High-Low Method The manufacturing costs of Carrefour Enterprises for the first t
ID: 2475373 • Letter: H
Question
High-Low Method
The manufacturing costs of Carrefour Enterprises for the first three months of the year follow:
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
Target Profit
Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, andfixed costs are $200,000.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $50,000.
a. Break-even point in sales units units
b. Break-even point in sales units if the company desire
Sales Mix and Break-Even Analysis
Wide Open Industries Inc. has fixed costs of $475,000. The unit selling price, variable costper unit, and contribution margin per unit for the company’s two products follow:
Product Selling Price Variable Cost per Unit Contribution Margin per Unit
AA $145 $105 $40
BB 110 75 35
The sales mix for products AA and BB is 60% and 40%, respectively. Determine the break-even point in units of AA and BB. Round your interim computations to nearest cent, if required.
a. Product AA units
s a target profit of $50,000 units
Sales Mix and Break-Even Analysis
Einhorn Company has fixed costs of $105,000. The unit selling price, variable costper unit, and contribution margin per unit for the company’s two products follow:
Product Selling Price Variable Cost per Unit Contribution Margin per Unit
QQ $50 $35 $15
ZZ 60 30 30
The sales mix for products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ.
a. Product QQ units
b. Product ZZ units
Explanation / Answer
As per Chegg guidelines we answer one question per post Cost at highest level of activity 440,000.00 Cost at Lowest level of activity 300,000.00 Highest level of activity 5,500.00 Lowest Level of activity 2,700.00 Variable cost per unit = (440,000 - 300,000)/(5,500- 2,700) Variable cost per unit = 140,000/2,800 Variable cost per unit = 50 Fixed Costs = 440,000 - 5,500*50 Fixed Costs = 440,000 - 275,000 Fixed Costs = 165,000
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